In the Japanese corporate world, you will often hear phrases like ‘Kigyou-doryoku de kakaku o iji shiteimasu’ (We are maintaining prices through corporate effort). It implies that the company is absorbing costs through internal streamlining or efficiency rather than passing the burden to the customer.
Origin and Etymology
The term is a compound of Kigyou (Enterprise) and Doryoku (Effort). While ‘doryoku’ is a common word for effort or striving, in a business context, it carries a specific nuance of endurance and sacrifice. It signifies that the company is ‘working hard’ behind the scenes to avoid raising prices—an action often viewed as a sign of respect and loyalty to the consumer base.
Nuances and Comparisons
While Kigyou-doryoku is positive, it is often discussed alongside Kosuto-katto (Cost-cutting). However, whereas ‘cost-cutting’ can sometimes imply lowering quality, ‘kigyou-doryoku’ is used to emphasize that despite economic hardships, the level of excellence remains intact.
Scenario 1: Menu Price Stability
A: “This restaurant hasn’t raised its prices in years, despite the inflation!”
B: “It is all thanks to their kigyou-doryoku. They’ve optimized their kitchen flow to save costs.”
Scenario 2: Employee Discussion
A: “How can we keep our service standards high while the shipping costs are doubling?”
B: “We need to show more kigyou-doryoku in our logistics department before we consider a price hike.”
Scenario 3: PR Statement
“We apologize for the delay in service, but our team is exercising maximum kigyou-doryoku to ensure your order arrives safely.”
Cultural Context and Common Mistakes
A common mistake for non-native business partners is thinking that Kigyou-doryoku is an excuse for low profits. In Japan, it is seen as a sign of integrity. Companies are expected to exhaust all ‘kigyou-doryoku’ before they ask the consumer to pay more. If a company raises prices too quickly, they might be criticized for lacking sufficient effort.
- When negotiating, mention kigyou-doryoku to show you are proactively solving problems rather than just asking for concessions.
- Use it as an appreciation: If a vendor keeps their prices stable, acknowledge their kigyou-doryoku to build long-term trust.
- Examples of these efforts include: reducing food waste, automating repetitive tasks, or finding alternative raw material suppliers without compromising quality.
To understand the depth of Japanese business operations, it is also useful to review the internal processes like the Kikaku-sho (Business Proposal), which often outlines how these ‘efforts’ are planned, or the Dai-kyuu (Substitutive Holidays) policy, which reflects how companies manage their most valuable resource: the employees behind the corporate effort.
